North Carolina Down Payment Support Systems

Payments Gateway - These systems would be the Mortgage Credit Certificate and the Down Payment Assistance System.

You buy a home between December 1, 2009 and January 1, 2009 and should you qualify for one of those plans, you can even be eligible for the $8,000 tax credit merely enacted into law.

First, who's a first-time Home Buyer? There is a First Time Home Buyer someone who has not owned a house within the past three years. This is precisely the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with moderate and low incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability according to a portion of the mortgage interest which you pay.

If you qualify for the MCC, you are able to claim 20% of the interest you pay on your mortgage as a credit on your own federal income taxes. It is possible to save as much as .

You will have the ability to join this with the $8,000 tax credit should you qualify for 2009, for the MCC. This could reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and any person expected to live in the dwelling who is 18 years of age or older.”

The income and house price limits that apply in Durham Orange and Chatham Counties are listed below.

MCC Income Limits 1 Man $61,500 2 Persons $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Price Limits New Dwelling $220,000 Existing Home $210,000

Home buyers that want help with their deposit and closing costs might be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay as much as .

This plan has more rigorous income limitations than the MCC plan summarized above. Like the MCC program, it can be utilized along with the new $8,000 tax credit on house purchases between December 1, 2009 and January 1, 2009. The down payment assistance, however, can not be employed in conjunction with all the MCC. This is an either or scenario.

The income and house price limits that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Men $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Support Sales Price Limits New House $210,000 Existing Home $210,000